KUALA LUMPUR: Main market-listed insulation producer PGF Capital Bhd (PCB) posted a revenue of RM40.5 million for the first quarter (Q1) ended May 31, 2024 (FY25), an increase of 42.1% year-on-year (YoY) from RM28.5 million posted in the same quarter last year.
This growth was largely attributed to higher sales contributions from the insulation segment due to strong demand from the Oceania market.
Net profit rose to RM6.7 million from RM3.9 million in the same quarter last year, marking a 71.8% YoY increase.
Segmentally, the insulation segment remained the core revenue generator, accounting for 99.5% of total revenue.
The remaining business segments, namely property development, investment holding and the other segments, had negligible impact on overall performance.
Executive director and group CEO Fong Wern Sheng said the positive earnings are the culmination of the team’s efforts following PCB’s strategy a few years ago to focus on key markets in the Oceania region, Singapore and Malaysia.
“In particular, the Oceania region is driving growth with robust demand for insulation materials, fuelled by increased construction activities and a revision to the Australian building code.
“This revision, which calls for greater energy efficiency in buildings, took effect in May 2024 has spurred the use of more insulation materials in building construction.
“We have our own warehouses in key cities such as Perth, Brisbane, Melbourne and Sydney, along with our own delivery fleet, to effectively capture the rising demand and enhance our customer service capabilities.
“Looking ahead, we remain upbeat about our prospects for the rest of this financial year, underpinned by the sustained demand growth for our insulation products as well as the full utilisation of our production capacity since late last year,” he said.
On July 17, PCB’s wholly-owned subsidiary, PGF Global Distribution Sdn Bhd, signed a five-year distributorship agreement with Centria Building Material Manufacturing (Shanghai) Cop Ltd (Centria), an advanced building materials and solutions provider.
The strategic partnership grants the group exclusive distribution rights for Centria’s mineral wool sandwich panels in Malaysia.
The collaboration presents significant opportunities to strengthen PCB’s market position and expand its customer base.
The versatility of the sandwich panel, which allows for diverse applications, offers immense potential.
Given Malaysia’s significant boom in data centre development, the sandwich panel is the ideal insulation material to help maintain optimal temperatures while reducing cooling costs and energy consumption, addressing the inherent challenges of operating data centres.
On real estate, PCB, in partnership with Malvest Properties Sdn Bhd, is poised to launch Phase 1 of its property development project by the end of 2024.
Aligned with the national initiative to transform Proton City into an Automotive High-Tech Valley, this initial phase will encompass a mix of residential and commercial units to meet the community’s growing needs.
As the land provider, PCB will contribute the land for this development, while Malvest will undertake the entire development process.
The group maintained a strong balance sheet with a net cash position as of May 31, 2024.
Net assets per share increased to RM1.41 from RM1.29 at the end of the preceding financial year (FY24).
Additionally, the group continued to generate positive net operating cash flow, recording RM3.4 million for the quarter.
